On his first day in office, President Donald Trump delays tariffs chose not to impose China-specific, instead directing his administration to focus on global trade imbalances and assessing China’s compliance with prior agreements.
Focus on Reducing Reliance on Foreign Supply Chains
The administration aims to address “damagingglobalist trade policies” by reducing reliance on foreign countries for essential supply chains, particularly through measures aimed at combating currency manipulation by other nations.
Negotiation with China on the Horizon
The decision to delay targeting China signals a shift toward negotiation. Trump’s team aims for a new agreement with Xi Jinping. This approach could avert a trade war while keeping future tariffs in play. The shift reflects a more diplomatic strategy in trade relations. It also leaves room for further adjustments depending on future developments.

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Relief for U.S. Companies
The delay of immediate tariffs offers temporary relief to businesses worried about potential impacts. Trump had proposed aggressive tariffs during his campaign. This included a 60% charge on Chinese imports. The tariff delay gives businesses time to adjust to evolving trade policies. Trump’s stance on tariffs remains a key issue in his economic agenda.
USMCA Under Scrutiny
Trump will direct his cabinet to evaluate the US-Mexico-Canada Agreement’s (USMCA) impact on American workers. The USMCA replaced NAFTA during his first term. Trump has consistently praised the agreement as a significant achievement. His focus will be on ensuring its continued benefits for the workforce. The assessment aims to refine policies for optimal outcomes.
Executive Actions and Economic Reforms
Trump plans to sign up to 100 executive orders on his first day, focusing on inflation reduction. Key targets include industry deregulation, especially in the oil and gas sectors. His actions aim to streamline policies and stimulate economic growth. By addressing inflation, he seeks immediate relief for consumers. The focus on deregulation reflects his ongoing commitment to reducing government intervention.
Impact on Dollar and Markets
The announcement triggered a sharp 1.2% drop in the dollar, marking its biggest decline since November 2023. U.S. equity futures, however, showed an increase, reflecting a mixed market response. Investors reacted to the delay in aggressive tariff measures. The market’s reaction highlighted uncertainty in response to the announcement. The combination of a dollar drop and rising equity futures created a complex financial landscape.
